Trial Court Must Assign Special Reasons For Imposing Double The Cheque Amount As Fine In Cheque Dishonour Cases: Karnataka High Court

The Karnataka High Court has said that special reasons are to be assigned by the trial court while imposing double the cheque amount as fine on holding the accused guilty for offence punishable under Section 138 of the Negotiable Instruments Act.

A single judge bench of Justice V Srishananda held thus while partly allowing a petition filed by one Francis Zavier W, challenging the order of conviction and sentence passed by the trial court on 15.10.2018 which came to be confirmed in appeal. The court had directed him to pay a fine of Rs 3 lakh, which is double the cheque amount.

On going through the records the court upheld the conviction order but modified the fine amount saying, “No special reasons are forthcoming for imposing the fine of Rs.3,00,000, which is double the cheque amount. While the learned Trial Magistrate has not assigned any reasons whatsoever, much less the special reason, the learned judge in the First Appellate Court did not even address the said issue.”

Noting that the role of the Court in convicting an accused is different from the role of the Court while passing the appropriate sentence in a given case, the court said “The statue no doubt invests the power in the learned Trial Magistrate to impose double the fine amount, if the facts and circumstances of such case do warrant imposition double the cheque amount as the fine.Every decision should be based on reasons in as much as reasoning in the heartbeat of a judgment.”

Placing reliance on Apex court judgement in the case of Amit Kapoor vs. Ramesh Chander & Anr (2012) it held, “If the fine amount is reduced from Rs.3,00,000/- to a sum of Rs.2,25,000/- ends of justice could be made.”

It also said that the dispute is privy to the parties and no State machinery is involved, thus accused need not pay a fine of Rs 10,000, towards the expenses of the State.

Appearance: Advocate Ismail Muneeb Musba for Petitioner.

Advocate Sudarsan G for Advocate Gaonkar Dinesh Neelkant for Respondent

Citation No: 2024 LiveLaw (Kar) 357

Case Title: Francis Zavier W AND MM Mathew

Case No: CRIMINAL REVISION PETITION NO. 1414 OF 2021

Click Here To Read/Download Order